Refurb bridge

Heavy refurbishment bridging: structural, extension, change of use

Heavy refurb bridges fund acquisition plus a defined works programme, with money released in tranches as stages complete. Sized against post-works value, redeemed by refinance or sale.

Audience: Property developers and investors

Situation: The property needs works that go beyond a light refurb — walls moved, roof reconfigured, use changed — and no term lender will touch it until it's done.

Primary: Bridging Finance

The situation

The line between light and heavy refurb matters for lender selection. Structural, extension, change of use, or works over ~15% of purchase price push you into heavy territory — different lender panel, different pricing.

How we approach it

We size the loan on post-works GDV (typically 70% of PGDV or 100% of costs, whichever's lower), agree the works schedule with a QS or monitoring surveyor, and pre-agree the exit route before drawdown.

What that looks like in practice

Sized on post-works value, not purchase price
Stage-drawdowns against QS or MS sign-off
Change-of-use projects (office to resi, PDR) actively funded
Exit lender pre-vetted for the finished specification
Interest usually rolled — no monthly cash drain during works

Typical timeline

Pre-drawdown
Works scoped, QS engaged, exit lender pre-agreed.
Drawdown
Initial tranche for purchase + first works phase.
Works
Staged releases against MS inspections.
Exit
Refinance onto term loan or sale.

Common questions

What counts as heavy vs light refurb?

Structural, extension, change of use, or works costing 15%+ of purchase = heavy. Cosmetic and simple modernisation = light. Wrong classification means wrong lender.

How are drawdowns released?

Against monitoring surveyor sign-off at pre-agreed stages. First tranche usually covers purchase plus initial 20-30% of works.

What if works overrun?

Contingency built into the initial sizing (typically 10%). Overruns beyond that need conversation early, not late.